3 Mega Dividend Stocks With Yields as High as 13.4%

Core Insights - Dividend yields are historically low, with the S&P 500 yielding less than 1.2%, yet some stocks offer significantly higher yields, such as Annaly Capital Management at 13.4% [1][2] Group 1: Annaly Capital Management - Annaly Capital Management has a dividend yield of 13.4%, which is notably high for a real estate investment trust (REIT) where the average yield is around 4% [2] - The company specializes in residential mortgage financing, investing in mortgage-backed securities guaranteed by government agencies and other residential mortgage loans, providing multiple revenue streams [3] - Annaly employs leverage to enhance returns, with earnings available for distribution increasing from $0.66 per share in Q3 of the previous year to $0.73 per share in Q2 of 2025, allowing for a dividend increase from $0.65 to $0.70 per share [4] Group 2: Western Midstream Partners - Western Midstream Partners offers a dividend yield of 9.5%, attributed to its structure as a master limited partnership (MLP) [5] - The MLP owns energy midstream assets, generating stable cash flow from long-term contracts, with expected free cash flow between $1.3 billion and $1.5 billion for the year [6] - The company plans to increase its distribution at a low-to-mid single-digit annual rate, supported by capital spending and potential acquisitions, including a $2 billion purchase of Aris Water Solutions [7] Group 3: Pfizer - Pfizer has a dividend yield of 6.3% and has consistently paid dividends for 347 consecutive quarters, increasing payments for over 15 years [8] - The high yield is partly due to concerns over an impending "patent cliff," with the loss of exclusivity for drugs generating over $17 billion in annual sales by 2028 [9] - To address this challenge, Pfizer is cutting costs, investing in R&D, and making acquisitions, including a $43 billion purchase of Seagen and a $1.3 billion investment in a potential cancer immunotherapy [10][11]